Neutral Torrent Pharma; target of Rs 4970: Motilal Oswal

Moneycontrol • 6 days ago

Original source

Key Investment Pillars

  • Domestic Formulation Growth: Strong performance in chronic therapies, robust scale-up of Curatio portfolio, and healthy market share in Semaglutide product.
  • Brazilian Market Outperformance: New launches, volume growth, pricing, and inventory normalization driving growth.
  • US Product Pipeline Expansion: Four products filed in the US in FY27, with another 4-5 filings planned by year-end, supporting long-term growth.
  • JB Pharma Integration: Cost rationalization and revenue synergies expected, with potential upside to be reassessed by 1Q-2QFY28.

Thesis Validation Checklist

  • Domestic Formulation Revenue Growth: Sustained growth of ~10% YoY, driven by chronic portfolio expansion and Semaglutide traction.
  • Brazil Revenue Growth: Double-digit growth, driven by new launches, volume expansion, and pricing.
  • US Revenue Growth: Constant currency growth of 12% CAGR over FY26-28, driven by new launches and portfolio expansion.
  • EBITDA Margin Expansion: Expected expansion of 310bp over FY26-28, driven by operating leverage and cost discipline.